|Honda Motor India Commences Operations, Beginning with HSCI Parts Operations|
|NEW DELHI, India, December 1, 2006– Honda Motor India Pvt Ltd (HMI), the wholly owned subsidiary of Honda Motor Co., Ltd. formally began its operations from its corporate office in Greater Noida, UP.
The plan to set up HMI was first announced in July this year by Mr Takeo Fukui, President and CEO, Honda Motor Co., Ltd, during his visit to New Delhi.
Formation of HMI is part of the overall strategy to strengthen and integrate operations of Honda companies in India with respect to service parts.
HMI will begin its functions by immediately taking over the parts operations of Honda Siel Cars India Ltd. (HSCI) and gradually integrate operations of Honda Siel Power Products and Honda Motorcycles & Scooters India Pvt Ltd.
HMI will study the possibility of establishing a similar synergistic relationship with the other Honda’s joint venture company, Hero Honda Motors Ltd in the near future.
Starting with a capital is Rs 15 crore, HMI has targeted a turnover of Rs 180 crore for the fiscal 2008.
HMI will have a new warehouse facility to stock the service parts of motorcycles, automobiles and power products together which will be utilized along with other common resources like transportation, logistics and system development to help improve cost and operational efficiencies by up to 20%. This would ultimately result in overall benefit to customers by way of quality services like delivery within 24 hours and other cost advantages.
Masahiro Takedagawa, Operating Officer, Honda Motor Co., Ltd, who is also the President and CEO of HSCI, will head the new company as its President & CEO.